I think its because your system does not support a gpt partition style hard drive (it can't boot from that and it needs to be converted to MBR). Put that hard drive into another PC as a secondary hard drive, open a disk management on the computer, select that gpt hard drive, click format (do not accidentally format the wrong drive).
Then, create a new simple volume and if it asks you to format the drive, select ntfs.
Place the drive back in your original computer and try reinstalling windows.
Another way to do this using diskpart (without moving the hard drive to another computer):
Boot to your windows CD, and open the repair options.
Open a command prompt
Type in:
Diskpart
list disk
Select disk (# you want to convert to MBR)
List volume
Select volume (# you want to convert to MBR)
Delete volume
Convert MBR
Reboot and try reinstalling windows on it.
Hi again Reyaz
I've just tried to boot from the Windows installation CD and that is fine until I try to click on the Repair Option. I then get the message"This version of System Recovery Options is not compatible with the version of Windows you are trying to repair. "
I have, however noticed that if I try a custom Instal Option, when I select a partition to instal it on, I have the option to format that partition. Would formatting it do any good?